AkzoNobel temporarily halts chlorate production

STOCKHOLM (ICIS news)--Eka Chemicals, AkzoNobel´s pulp and paper chemicals business unit, will reduce production capacity at chlorate plants due to falling demand, the company said on Tuesday.

Eka would temporarily stop production at its factory in Mo i ?xml:namespace>Rana, Norway, and partly close its chlorate production in Columbus, Mississippi. It would also reduce chlorate output at other plants, it added.

“We see a global decrease in demand for sodium chlorate for pulp bleaching, combined with an escalating cost structure during recent years”, said director of global marketing at Eka Chemicals Lennart Nilsson.

High energy costs were also to blame for the closures.

“We will also make necessary maintenance stops in production after a period of extremely high capacity utilisation at our plants” said Nilsson.

There would be no loss of jobs, with the length of output reductions dependent on the pulp and paper industry market environment.